Kenny: Debt deal may be in place next month

The Taoiseach Enda Kenny has said he is hopeful that a deal to reduce Ireland's bailout repayments can be reached, but it may be some way off yet.

Agreement on extending the maturities on Ireland EU loans has been reached in principal and will be discussed at a meeting of EU Finance Ministers today, chaired by the Finance Minister Michael Noonan.

Speaking on his way into Government Buildings this morning, the Taoiseach said a deal would be good news for the Irish taxpayer.

However, he said it may be next month before agreement is reached.

Mr Kenny said: "Clearly the principle has been accepted, it will be discussed this morning, but as commissioner Olli Rehn pointed out, if arrangements have to be put in place they will be put in place next month in Dublin.

"Clearly there are benefits in there depending on the options chosen, and we would hope that discussions would lead in that direction, but we will have to wait and see for some time yet."